The Federal Housing Finance Agency (FHFA) reported Thursday morning that U.S. home prices rose 0.5% year over year in July. Compared with July 2015, the inflation-adjusted home price has gained 5.8%. Home prices rose 0.3% sequentially in June.

The FHFA monthly index is calculated using purchase prices of houses with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.

The consensus estimate for July called for a month-over-month increase of 0.4%.

Over the past 12 months, gains have been greatest in the Pacific states, up 7.7%, and least in the Middle Atlantic states, where prices are up 2.6%. The year-over-year index rose in all nine Census Bureau divisions in July.

Home prices posted month-over-month gains in all nine Census Bureau divisions. The Middle Atlantic (up 0.2%) posted the smallest gain while 3 divisions — East North Central, New England, and South Atlantic — each showed a 0.3% gain. The Mountain division had a gain of 0.5% and the Pacific and West South Central divisions posted gains of 0.6%. The West North Central tacked on a 0.9% gain in July and the leader for the month was the East South Central division (Kentucky, Tennessee, Mississippi, Alabama).

Across the U.S. home prices rose 5.7% year over year from July 2014 to July 2015.

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